Bilbao La Vieja 4

The asset

Calle San Francisco 4 · Bilbao La Vieja · Ibaiondo — 46 units. Operated under management by an operator, whose fee is charged below GOP.

The deal, and why it is ours

A 46-room hotel on the river side of San Francisco, opened in 2007 and never quite full. Why it is available: the owning family wants out of operating and the current operator's lease ends in December (The seller needs out). What we do: take vacant possession at the lease end, a light refurbishment floor by floor without closing, reposition to the Guggenheim's year-round trade, hold. What has to be true: · 138 EUR ADR at 76 % — the river side of the barrio runs there already. · The refurbishment can be done floor by floor with the hotel trading. · The lease actually ends in December and the operator leaves.

Timeline

Capital calls

Equity is called per tranche as the deal requires it, not as a single amount on day one. The schedule follows once the escritura date is set; each call is made in writing with its amount, due date and payment details.

Recoverable VAT of 207.921 € is additionally fronted by equity at the relevant payment dates and returned pro-rata on recovery — it carries no promote and is not part of the waterfall. Peak equity outstanding: 4.606.190 €.

Operating projection

On the 55% LTV basis. Cash after debt service is what the waterfall distributes — the LP’s preferred return is served first, then the promote tiers, which the full business plan sets out year by year.

Financing structures compared

Returns are shown before the VAT float (17,6 % on the reporting basis) and net of it (17,5 %); both are stated because both are true — the float is recovered in full but is capital while outstanding.

Terms of reading

• This document is private and confidential, prepared for its named recipient, and is not an offer or a solicitation of securities in any jurisdiction.
• All figures are outputs of Marisol's underwriting model as at the date of preparation. Assumptions — prices, costs, dates, rates, occupancy — will change as the transaction and the market develop, and the business plan changes with them.
• Revenue projections reflect our best knowledge and operating practice. They are not a guarantee of income, and no return shown here is promised or assured.
• Market data is drawn from third-party comparables at the date stated and is provided as context, not as a forecast.
• Nothing in this document creates an obligation on the General Partner or any of its affiliates. A commitment arises only on execution of definitive subscription and shareholder documentation, which prevails over this document in every respect.
• Tax treatment depends on each investor's own circumstances.